Sunstone Hotel Investors Inc. [NYSE: SHO] closed the trading session at $11.76 on 07/08/21. The day’s price range saw the stock hit a low of $11.39, while the highest price level was $12.06. The company report on July 9, 2021 that Sunstone Hotel Investors Successfully Amends Unsecured Debt Agreements, Providing Enhanced Acquisition Capacity.
Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the hospitality sector, announced that it has completed amendments to the agreements governing its in-place unsecured debt, including the Company’s $500 million revolving credit facility, $185 million of funded term loan facilities and $205 million of outstanding private placement senior notes. Pursuant to the terms of the amendments, certain restrictions limiting the aggregate value of unencumbered hotel acquisitions that the Company can complete during the covenant waiver period have been removed. Following the amendments, the Company is no longer subject to the restrictive covenant limiting non-equity funded acquisitions to a maximum of $250 million. Additionally, provided that an event of default has not occurred, the agreement governing Sunstone’s revolving credit facility and funded term loans no longer requires a mandatory prepayment from net proceeds received from asset sales or equity issuances. The amended unsecured debt agreements continue to provide for a waiver of the financial covenants through March 31, 2022, and require compliance with various other restrictions during the covenant waiver period, including the maintenance of a minimum liquidity threshold.
John Arabia, President and CEO, stated, “We are pleased to announce another favorable amendment of our unsecured debt agreements and appreciate the continued support from our long-standing lender and noteholder relationships. The amended agreements provide the Company with incremental capacity and enhanced flexibility to pursue additional Long-Term Relevant Real Estate acquisitions. In addition, this most recent amendment positions Sunstone to better take advantage of acquisition opportunities that may arise as the industry recovers, without having to solely rely on the need to sell existing assets or raise additional equity capital.”.
The stocks have a year to date performance of 3.80 percent and weekly performance of -5.31 percent. The stock has been moved at 3.16 percent over the last six months. The stock has performed -11.84 percent around the most recent 30 days and changed -6.74 percent over the most recent 3-months.
If compared to the average trading volume of 2.10M shares, SHO reached to a volume of 2130542 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Sunstone Hotel Investors Inc. [SHO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SHO shares is $13.04 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SHO stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Wells Fargo have made an estimate for Sunstone Hotel Investors Inc. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on December 10, 2020. While these analysts kept the previous recommendation, Jefferies raised their target price from $10 to $12. The new note on the price target was released on November 23, 2020, representing the official price target for Sunstone Hotel Investors Inc. stock. Previously, the target price had yet another raise to $9, while Compass Point analysts kept a Neutral rating on SHO stock.
The Average True Range (ATR) for Sunstone Hotel Investors Inc. is set at 0.34, with the Price to Sales ratio for SHO stock in the period of the last 12 months amounting to 20.11. The Price to Book ratio for the last quarter was 1.40, with the Price to Cash per share for the same quarter was set at 1.47.
SHO stock trade performance evaluation
Sunstone Hotel Investors Inc. [SHO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.31. With this latest performance, SHO shares dropped by -11.84% in over the last four-week period, additionally plugging by 3.16% over the last 6 months – not to mention a rise of 52.13% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SHO stock in for the last two-week period is set at 29.54, with the RSI for the last a single of trading hit 21.90, and the three-weeks RSI is set at 35.58 for Sunstone Hotel Investors Inc. [SHO]. The present Moving Average for the last 50 days of trading for this stock 12.72, while it was recorded at 12.11 for the last single week of trading, and 11.29 for the last 200 days.
Sunstone Hotel Investors Inc. [SHO]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Sunstone Hotel Investors Inc. [SHO] shares currently have an operating margin of -94.48 and a Gross Margin at -67.32. Sunstone Hotel Investors Inc.’s Net Margin is presently recorded at -151.08.
Return on Total Capital for SHO is now -7.74, given the latest momentum, and Return on Invested Capital for the company is -12.72. Return on Equity for this stock declined to -17.51, with Return on Assets sitting at -11.72. When it comes to the capital structure of this company, Sunstone Hotel Investors Inc. [SHO] has a Total Debt to Total Equity ratio set at 38.82. Additionally, SHO Total Debt to Total Capital is recorded at 27.97, with Total Debt to Total Assets ending up at 26.64. Long-Term Debt to Equity for the company is recorded at 42.40, with the Long-Term Debt to Total Capital now at 27.71.
Reflecting on the efficiency of the workforce at the company, Sunstone Hotel Investors Inc. [SHO] managed to generate an average of -$10,118,950 per employee. Receivables Turnover for the company is 10.85 with a Total Asset Turnover recorded at a value of 0.08.Sunstone Hotel Investors Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.60 and a Current Ratio set at 4.60.
Earnings per share (EPS) analysis for Sunstone Hotel Investors Inc. [SHO] stock
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SHO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Sunstone Hotel Investors Inc. go to 19.90%.
Sunstone Hotel Investors Inc. [SHO]: Insider Ownership positions
There are presently around $2,570 million, in the hands of institutional investors. The top three institutional holders of SHO stocks are: VANGUARD GROUP INC with ownership of 30,933,006, which is approximately 3.165% of the company’s market cap and around 1.40% of the total institutional ownership; BLACKROCK INC., holding 23,237,794 shares of the stock with an approximate value of $273.28 million in SHO stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $151.89 million in SHO stock with ownership of nearly 7.493% of the company’s market capitalization.
Positions in Sunstone Hotel Investors Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 110 institutional holders increased their position in Sunstone Hotel Investors Inc. [NYSE:SHO] by around 19,143,232 shares. Additionally, 90 investors decreased positions by around 20,286,464 shares, while 15 investors held positions by with 179,131,565 shares. The mentioned changes placed institutional holdings at 218,561,261 shares, according to the latest SEC report filing. SHO stock had 29 new institutional investments in for a total of 3,590,073 shares, while 18 institutional investors sold positions of 1,003,577 shares during the same period.